Paramount Bank, Farmington Hills, MI
Closing Date: December 10, 2010
Failed Bank Information for Paramount Bank, Farmington Hills, MI
| Bidder | Type of Transaction | Deposit Premium % | Asset Premium/(Discount) $(000) | SF Loss Share Tranche 1 | SF Loss Share Tranche 2 | SF Loss Share Tranche 3 | Commercial Loss Share Tranche 1 | Commercial Loss Share Tranche 2 | Commercial Loss Share Tranche 3 | Value Appreciation Instrument | Conforming Bid | Linked |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Winning bid and bidder: Level One Bank Farmington Hills, MI | All deposit whole bank with loss share | 0.00% | $ (38,600) | 80% | 0% | 80% | 80% | 20% | 80% | No | Yes | Yes |
| Cover: First Michigan Bank, Troy, MI | All deposit whole bank with loss share | 0.50% | $ (40,000) | 80% | 80% | N/A | 80% | 80% | N/A | No | Yes | N/A |
| Other Bids: None |
Notes:
- The winning bidder's acquisition of all the deposits was the least costly resolution compared to a liquidation alternative. The liquidation alternative was valued using valuation models to estimate the market value of the assets. Bids for loss share, if any, were valued using a discounted cash flow analysis for the loss share portfolio over the life of the loss share agreement. If any bids were received that would have been more costly than liquidation they have been excluded from this summary.
- The cover bid is the least costly bid after excluding all bids submitted by the winning bidder.
- For more information on the bid disclosure policy, see Failed Financial Institution Bid Disclosure Policy.